BMW's CEO Robert Reithofer hired consultants to draw up plans to cut five billion dollars in annual expenses. That is a big chunk of cash and where exactly is it going to come from? They want to cut costs while expanding the lineup? The 'i' brand, the BMW X7, the 2-Series Active Tourer, and there is much more on the way. Something is going to have be cut and something will give, but what?
They want to sell more cars and keep profitability high while cutting costs. BMW already stated they will not be making any bespoke M motors and basing all engines on those already in production so that is gone. BMW stated they will not produce a new M1 or M version of the i8 so that is gone. They have also diluted the brand by putting the M badge on everything to get extra money. Keep profits high, who cares right?
It seems the cuts and choices are all affecting enthusiasts but not the bottom line. BMW is simply chasing profit above all else. Chasing it to a level that means the quality of the products suffers and enthusiast choices in the lineup suffer. BMW is basing their decisions on profit targets and not on quality, "Generally speaking we are continually watching our costs, and seek to maintain and enhance our international competitiveness. We seek to achieve a sustainable EBIT margin of between 8 and 10 percent, our strategy is based on this profit target."
A BMW i8 M or new M1 will not provide the EBIT margin BMW is looking for. It would provide BMW fans with the best M car in decades though. But who cares? Profit targets between 8 and 10 percent are more important than the Ultimate Driving Machine. Gentlemen, BMW died a while ago. Say hello to the Ultimate Profit Machine era.